Question

Walker Manufacturing Company reported the following materials data for the month ending June 30:

Materials purchased $776,400
Materials inventory, June 1 219,000
Materials inventory, June 30 174,800

Determine the cost of direct materials used in production by Walker during the month ended June 30.

Answer 1

Answer:

the cost of direct material used is $820,600

Explanation:

The computation of the cost of direct material used is shown below:

= Opening inventory + material purchased - ending inventory

= $219,000 + $776,400 - $174,800

= $820,600

Hence, the cost of direct material used is $820,600

It could come by applying the above formula